BBA 101 Management Process &

Organizational Behaviour

Condensed Course Material

BBA- 1st Semester
UNIT 4
Concept of Group and
Group Dynamics
 
GROUP
A Group is basically an assemblage of people. It can be understood as a collection of
individuals (two or more), who come together and interact with each other, so as to achieve
the objectives of the organization. These are the foundation of an organization.

Characteristics of Groups

(i) Size: To form a group, it must be having at least two members. Practically, the number of
group members ranges from 15 to 20. The more the members in the group, the more complex
it is to manage.

(ii) Goals: Every group has certain goals, that are the reasons for its existence.

(iii) Norms: A group has certain rules, for interacting with the group members.

(iv) Structure: It has a structure, based on the roles and positions held by the members.
 (v) Roles: Every member of a group has certain roles and responsibilities, which are
assigned, by the group leader.

(vi) Interaction: The interaction between the group members can occur in several ways, i.e.
face to face, telephonic, in writing or in any other manner.

(vii) Collective Identity: A group is an aggregation of individuals, which are separately

called as members, and collectively called as a group.

Reasons for Group Formation

 Personal Characteristics: Individuals with similar beliefs, attitudes and values are

more likely to form groups.
 Opportunity for interaction: If the employees of an organization, are given an
opportunity to interact with one another, they find that they have many things similar, which
also creates a group.
 Interest and goals: When individuals share common interest and goals, it requires
cooperation and coordination for its achievement, which also results in the formation of
groups.
 Influence and power: Last but not the least, a group has more influence and power,
as compared to an individual, which also promotes its formation.

In general, groups are created out of individual need satisfaction, which can be personal,
social or economical. Meaning that the members need to associate with the group in order to
fulfil their basic needs.

Types of Groups
GROUP DYNAMICS
Group dynamics deals with the attitudes and behavioral patterns of a group. Group dynamics
concern how groups are formed, what is their structure and which processes are followed in
their functioning. Thus, it is concerned with the interactions and forces operating between
groups.

Group dynamics is relevant to groups of all kinds – both formal and informal. If the UPA
government has set up Group of Ministers for every governance issue, the Supreme Court of
India has 27 Group of Judges committees overseeing all manner of non-judicial work in the
apex court. In an organizational setting, the term groups are a very common and the study of
groups and group dynamics is an important area of study.

Stages of Group Development
 
Group Development is a dynamic process. How do groups evolve? There is a process of five
stages through which groups pass through. The process includes the five stages: forming,
storming, forming, performing, and adjourning.
1. Forming
The first stage in the life of a group is concerned with forming a group. This stage is
characterized by members seeking either a work assignment (in a formal group) or other
benefit, like status, affiliation, power, etc. (in an informal group). Members at this stage either
engage in busy type of activity or show apathy.

2. Storming
The next stage in this group is marked by the formation of dyads and triads. Members seek
out familiar or similar individuals and begin a deeper sharing of self. Continued attention to
the subgroup creates a differentiation in the group and tensions across the dyads / triads may
appear. Pairing is a common phenomenon. There will be conflict about controlling the group.

3. Norming
The third stage of group development is marked by a more serious concern about task
performance. The dyads/triads begin to open up and seek out other members in the group.
Efforts are made to establish various norms for task performance.

Members begin to take greater responsibility for their own group and relationship while the
authority figure becomes relaxed. Once this stage is complete, a clear picture will emerge
 about hierarchy of leadership. The norming stage is over with the solidification of the group
structure and a sense of group identity and camaraderie.

4. Performing
This is a stage of a fully functional group where members see themselves as a group and get
involved in the task. Each person makes a contribution and the authority figure is also seen as
a part of the group. Group norms are followed and collective pressure is exerted to ensure the
Process of Group effectiveness of the group.

The group may redefine its goals Development in the light of information from the outside
environment and show an autonomous will to pursue those goals. The long-term viability of
the group is established and nurtured.

5. Adjourning
In the case of temporary groups, like project team, task force, or any other such group, which
have a limited task at hand, also have a fifth stage, This is known as adjourning.

The group decides to disband. Some members may feel happy over the performance, and
some may be unhappy over the stoppage of meeting with group members. Adjourning may
also be referred to as mourning, i.e. mourning the adjournment of the group.

Theories of Group Formation
Theories of Group Formation:

1. Propinquity Theory
The most basic theory explaining affiliation is propinquity. This interesting word simply
means that individuals affiliate with one another because of spatial or geographical
proximity. In an organisation employees who work in the same area of the plant or office or
managers with offices close to one another would more probably form into groups than
would those who are not physically located together. There is some research evidence to
support the propinquity theory and on the surface, it has a great deal of merit for explaining
group formation. The drawback of this theory is that it is not analytical and does not begin to
explain some of the complexities of group formation. Some more theoretical and practical
reasons need to be explored.

2. Homan’s Theory
According to George C. Homans, “The more activities persons share, the more numerous will
be there interactions and the stronger will be their shared activities and sentiments, and the
more sentiments people have for one another, the more will be their shared activities and
interactions.”
 It is a very comprehensive theory and based on activities, interactions and Homan’s theory is
based on sentiments. These three elements are directly related to each other. The members’
activities interactions and of a group share activities and interact with one another not just
because of physical proximity but also to accomplish group goals.

The key element is interaction because of which they develop common sentiments for one
another. These sentiments gradually get expressed through the formation of informal groups.
If any disturbance is caused to any of the three-activities, interactions and sentiments, it is
likely to disturb all the others.

3. Balance Theory
Another very comprehensive theory is a Balance Theory of group formation. This theory as
proposed by Theodore Newcomb states that “Persons are attracted to one another on the basis
of similar attitudes towards commonly relevant objects and goals. Once a relationship is
formed, it strives to maintain a symmetrical balance between the attraction and the common
attitudes. If an imbalance occurs, attempts are made to restore the balance. If the balance
cannot be restored, the relationship dissolves.”

Thus, the balance theory is additive in nature in the sense, that it introduces the factor of
balance to the propinquity and interaction factors. There must be a balance in the relationship
between the group members for the group to be formed and for its survival. The following
-figure shows the balance theory.

Individual (A) will interact and form a relationship/group with individual (B) because of
common attitudes and values (C). Once this relationship is formed, the participants strive to
maintain a symmetrical balance between the attraction and the common attitudes. If an
imbalance occurs, an attempt is made to restore the balance. If the balance cannot be restored,
the relationship dissolves.
4. Exchange Theory
This theory is based on reward-cost outcomes of interactions. To be attracted towards a
group, a person thinks in terms of what he will get in exchange of interaction with group
members. A minimum positive level (rewards greater than costs) of an outcome must exist in
order for attraction or affiliation to take place. Rewards from interactions gratify needs while
costs incur anxiety, frustrations, embarrassment or fatigue. Propinquity, interaction and
common attitudes all have roles in the exchange theory.

Concept of Team v/s Group

 

Nowadays, group or team concept is adopted by the organization, to accomplish various

client projects. When two or more individuals are classed together either by the organization
or out of social needs, it is known as a group. On the other hand, a team is the collection of
people, who are linked together to achieve a common objective.

Most of the work in a business entity is performed in groups. Although the individual
personality of an employee is important, their effectiveness depends on the teams in which
they are working collectively to achieve any objective. In a particular team, there can be
several groups in which the group members individually help their leader to accomplish the
goals.

Comparison Chart

BASIS FOR
GROUP TEAM
COMPARISON

A collection of individuals who A group of persons having collective

Meaning work together in completing a identity joined together, to
task. accomplish a goal.

Leadership               Only one leader More than one

 Members                  Independent Interdependent

Process                      Discuss, Decide and Delegate. Discuss, Decide and Do.

Work Products        Individual Collective

Focus on                   Accomplishing individual goals. Accomplishing team goals.

Accountability         Individually Either individually or mutually

Group
A group is an assemblage of persons who work, interact and cooperate with one another in
achieving a common goal in a specified time. The identity of the group members is taken
individually. The members share information and resources with other group members.

In an organisation, the groups are made on the basis of common interests, beliefs, experience
in common fields and principles, so that they can easily coordinate with each other. There are
two kinds of groups:

 Formal Group: These groups are created by the management of the organisation for
performing a specific task.
 Informal Group: The formation of these groups is done naturally in an organisation, to
satisfy the social or psychological human needs.

For example: Ethnic groups, trade unions, friendship circles, airline flight crew, etc.

Team
A group of people who are joined for achieving a common goal within a stipulated period,
having collective accountability is known as the team. The agenda of the team is “one for all
and all for one”. Apart from sharing information, the team members also share the
responsibility of the team task. The team is always responsible for the outcome (i.e. Result of
the collective efforts of the team members).

The team members have a mutual understanding with other members. They work jointly to
maximise the strengths and minimise the weakness by complementing each other. The most
important feature of a team is “synergy” i.e. the team can achieve much more as the members
can achieve individually. The three key features of team functioning are:

 Cohesion
 Confrontation
 Collaboration

For example: Cricket team, team for accomplishing a project, team of doctors, management
team etc.

Key Differences between Group and Team

 The difference between group and team in the workplace can be drawn clearly on the
following grounds:

1. There is only one head in a group. A team can have more than one head.
2. The group members do not share responsibility, but team members share the responsibility.
3. The group focuses on achieving the individual goals. Conversely, the team members focus on
achieving the team goals.
4. The group produces individual work products. As opposed to, the team who produces
collective work products.
5. The process of a group is to discuss the problem, then decide and finally delegate the tasks
to individual members. On the other hand, a team discusses the problem, then decide the way of
solving it and finally do it collectively.
6. The group members are independent. Unlike a group, the team members are
interdependent.

Types of Teams
Teams can be divided into four main groups: project teams, self-managed teams, virtual
teams, and operational teams. What type of team you have depends on its purpose, location,
and organizational structure. Each type of team comes with its unique set of strengths and
weaknesses. In order to fully utilize your team, you first need to understand where each type
of teams works the best.

1. Project team

A project team is a group of employees that work collectively and have shared goals and
strategies.

This type of team means structuring work in a specific, measurable and time-constrained
way. Project teams allow assigning clear roles and responsibilities, set specific deadlines.

Types of Project teams

(i) Functional team

A functional team is permanent. It includes members of the same department with different
responsibilities. There is a manager who is responsible for everything. Everyone in the team
reports to him.

A functional team can be usually recognized in traditional project management companies.

This type requires a manager who ensures that there are no obstacles when it comes to
transferring work from one team to another.

(ii) Cross-functional team

 A cross-functional team consists of members from different departments. This kind of team
tackles specific tasks that require different expertise and inputs.

Cross-functional teams are becoming increasingly popular all over the world. However, there
is an opinion that the whopping number of all cross-functional teams are dysfunctional.

(iii) Matrix team

A matrix team is a “2-boss system”. Here an individual reports to a different manager for
his/her work. A matrix team is the product of a Matrix management approach.

It helps top managers to retain control over the project without being involved in decisions.

(iv) Contract team

A contract team is an outsourced team where the members are tied down by a contract.

The client can easily cut all ties to the team after the project is completed and the contract has
ended. In this kind of team, the role of project managers is crucial. They have to maintain
constant communication between the customer and team members, to compensate for the
lack of the team’s physical presence, to bear full responsibility for project success or failure.

2. Self-managed teams

Self-managed teams consist of employees of the same company who work together.
Although they have a wide set of objectives, their key goal is to reach a common result.

There is no manager here. The members of self-managed teams should determine rules and
expectations, solve problems and bare shared responsibilities.

Thinking about creating a self-managed team, you should pay attention to the levels of
responsibility and the autonomy that is given to the team.

The main advantages of self-managed teams are:

 Improved motivation because of autonomy

 Ability to manage own time and handle tasks when it suits employees
 No pay for office
 Pride in team accomplishments because of shared responsibility

3. Virtual team

A virtual team involves employees who work in different locations and who rely on the
power of communication and collaboration tools to get things done together.

This kind of team provides people with better life-work balance and allow business owners to
hire the best experts.
 There are different types of virtual teams that are characterized by 3 dimensions: time, space
and culture.

 Time is about when people work (during different hours, on different shifts, in different
time-zones).
 Space is about where people work (right next to each other or hundreds of kilometers
away).
 Culture is about how people work (including such factors as gender, age, race, language,
education, nationality, social, religious, economic factors, etc.)

4. Operational team

An operational team deal with supporting other types of teams. It is formed to make sure that
all office processes go smoothly.

Operational teams may have their own projects and function as they also have well-defined
roles and responsibilities.

5. Problem-solving team

A problem-solving team is usually temporary. It is focused on solving a specific issue. This

kind of team may be created after the financial crisis or any unplanned event or challenge. It
is aimed to come up with solutions to help the company climb out of a steep recession.

Once guidelines are set in place and plans are formed, the task forces and committees are
disbanded.

Building and Managing

Effective Team
 

Without team building skills, a manager risks limiting the productivity of their employees to
what each member can do on their own, whereas if you foster team building you can unite
your team around a common goal, which will raise productivity as a result.

So here are five steps to building a productive and effective:

Step 1: Establish leadership

If your employees trust your judgement, they will work effectively even when you’re not
around. Before you can start team building, you need to develop the right kind of leadership
skills. This doesn’t mean asserting authority, instead try to foster trust through honesty and
transparency.  Especially in larger organizations, managers can’t be everywhere at once, but
if your employees trust your judgements they will work effectively even when you’re not
around.
Step 2: Establish relationships with each of your employees

Try to learn more about each member of your team, their skill sets, how they are motivated
and their likes and dislikes. This knowledge is invaluable to leaders, as it allows them to
match each employee’s expertise and competencies to specific problems, which will help
increase their productivity and job satisfaction.

As well as this, try to include your employees in the decision making process where possible.
Instead of delegating tasks, give your team’s open-ended projects and allow them to
determine the best solution. This will encourage them to cooperate and develop problem
solving skills.

Step 3: Build relationships between your employees

As your team starts to cooperate more, examine the way they work together and take steps to
improve communication, cooperation and trust amongst the team. If there are any conflicts,
try to resolve them amicably. Listen to both sides of the argument and act as a mediator. One
way to do this is to brainstorm solutions, which helps to empower your employees and may
lead to new solutions to the problem.

Step 4: Foster teamwork

Once you have established relations with and between your employees, it’s time to help them
work together effectively. Encourage your team to share information, both amongst
themselves and within the wider organisation.  Also, try to communicate more with your
team. This goes beyond simply holding meetings, and includes things like being open to
suggestions and concerns, asking about each team member’s work and offering assistance
where necessary, and doing everything you can to communicate clearly and honestly with
your team.

Step 5: Set ground rules for the team

Finally, you can begin officially establishing your team through creating team values and
goals, as well as evaluating team performance alongside individual performance. Be sure to
include your team in this process, so they know what’s required and agree with it.

Team building is one of the most important responsibilities a manager has. It isn’t something
that can be achieved in a short time and then forgotten. It is an ongoing organic process that
you a will have to facilitate and guide. As this process unfolds, however, your team members
will begin to trust and support one another and share their skill sets and effort in order to
more effectively complete your organisation’s goals.